Hexcel Turnaround - 2001 (A)

Posted: 25 Apr 2012

See all articles by Paul W. Marshall

Paul W. Marshall

affiliation not provided to SSRN

James Quinn

Harvard University - Business School (HBS)

Reed Martin

New York University (NYU) - Leonard N. Stern School of Business

Multiple version iconThere are 3 versions of this paper

Date Written: January 4, 2012

Abstract

Hexcel's new CEO is faced with deciding how to "take out" $60 million in cash costs in fiscal 2002, as two of the company's end markets - electronics and commercial aerospace - are expected to decline precipitously. Options include closing plants, exiting a business, or undertaking a major headcount reduction. Includes a description of Hexcel's private equity relationship with Goldman Sach's Capital Partners and presents the financial challenges of renegotiating bank lending covenants and managing maturing debt. Focuses on selecting a turnaround approach from the point of view of a general manager (the CEO).

Learning Objective: To illustrate the problems facing a general manager in a turnaround situation.

Suggested Citation

Marshall, Paul W. and Quinn, James and Martin, Reed, Hexcel Turnaround - 2001 (A) (January 4, 2012). Harvard Business School Entrepreneurial Management Case No. 806-099, Available at SSRN: https://ssrn.com/abstract=2046175

Paul W. Marshall (Contact Author)

affiliation not provided to SSRN ( email )

James Quinn

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Reed Martin

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY
United States

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